When a corporation fails,the maximum that can be lost by an individual shareholder is:

Question

Quizplus · Accepted Answer

When a corporation fails, the individual shareholder's liability is limited to the amount of their initial investment. Shareholders are not personally responsible for the corporation's debts, and they cannot be held liable for more than the amount they invested in the company. Therefore, the maximum loss that an individual shareholder can face when a corporation fails is the amount of their initial investment.

When a Corporation Fails,the Maximum That Can Be Lost by an Individual